29/07/2011 11:39 BST | Updated 28/09/2011 06:12 BST

President Obama Speaks Out On US Debt Crisis

US President Barack Obama has urged Democrats and Republicans to work together to find a solution to the debt ceiling crisis.

"What's clear now is that any solution to avoid default must be bipartisan", he said. “The power to solve this is in our hands”, he told reporters on Friday.

"There are plenty ways out of this mess... The time for compromise on behalf of the American people is now", he added.

But he warned that his country could lose its AAA credit rating over the crisis.

The US are currently locked in crunch talks over whether to raise the debt ceiling. If Congress do not approve the plans by August 2, the country's Treasury could run out of money.

The crisis could affect bonds issued by banks across the world, which use dollars. Last week Business Secretary Vince Cable said it was the biggest threat to the global economy.